diff --git a/packages/app-next/src/examples/graphiqlPlugin.tsx b/packages/app-next/src/examples/graphiqlPlugin.tsx
index 87f2bb242c..c40b78fc97 100644
--- a/packages/app-next/src/examples/graphiqlPlugin.tsx
+++ b/packages/app-next/src/examples/graphiqlPlugin.tsx
@@ -14,11 +14,11 @@
  * limitations under the License.
  */
 
-import React from 'react';
 import {
   createExtension,
   createPlugin,
   coreExtensionData,
+  createSchemaFromZod,
 } from '@backstage/frontend-plugin-api';
 import { Router as GraphiQLPage } from '@backstage/plugin-graphiql';
 
@@ -27,12 +27,12 @@ export const GraphiqlPageExtension = createExtension({
     component: coreExtensionData.reactComponent,
     path: coreExtensionData.routePath,
   },
+  configSchema: createSchemaFromZod(z =>
+    z.object({ path: z.string().default('/graphiql') }),
+  ),
   factory({ bind, config }) {
-    bind.component(() => {
-      return <GraphiQLPage />;
-    });
-    // TODO: In need of schemas and type safety
-    bind.path((config as { path: string }).path);
+    bind.component(GraphiQLPage);
+    bind.path(config.path);
   },
 });
 
@@ -43,7 +43,6 @@ export const graphiqlPlugin = createPlugin({
       id: 'graphiql.page',
       at: 'core.router/routes',
       extension: GraphiqlPageExtension,
-      config: { path: '/graphiql' },
     },
   ],
 });
diff --git a/packages/frontend-app-api/src/createExtensionInstance.ts b/packages/frontend-app-api/src/createExtensionInstance.ts
index 0b62df74ae..de9a41f49f 100644
--- a/packages/frontend-app-api/src/createExtensionInstance.ts
+++ b/packages/frontend-app-api/src/createExtensionInstance.ts
@@ -27,26 +27,45 @@ export interface ExtensionInstance {
 /** @internal */
 export function createExtensionInstance(options: {
   id: string;
-  extension: Extension;
+  extension: Extension<unknown>;
   config: unknown;
   attachments: Record<string, ExtensionInstance[]>;
 }): ExtensionInstance {
-  const { extension, config, attachments } = options;
+  const { id, extension, config, attachments } = options;
   const extensionData = new Map<string, unknown>();
-  extension.factory({
-    config,
-    bind: mapValues(extension.output, ref => {
-      return (value: unknown) => extensionData.set(ref.id, value);
-    }),
-    inputs: mapValues(
-      extension.inputs,
-      ({ extensionData: pointData }, inputName) => {
-        // TODO: validation
-        return (attachments[inputName] ?? []).map(attachment =>
-          mapValues(pointData, ref => attachment.data.get(ref.id)),
-        );
-      },
-    ),
-  });
-  return { id: options.id, data: extensionData, $$type: 'extension-instance' };
+
+  let parsedConfig: unknown;
+  try {
+    parsedConfig = extension.configSchema?.parse(config ?? {});
+  } catch (e) {
+    throw new Error(
+      `Invalid configuration for extension instance '${id}', ${e}`,
+    );
+  }
+
+  try {
+    extension.factory({
+      config: parsedConfig,
+      bind: mapValues(extension.output, ref => {
+        return (value: unknown) => extensionData.set(ref.id, value);
+      }),
+      inputs: mapValues(
+        extension.inputs,
+        ({ extensionData: pointData }, inputName) => {
+          // TODO: validation
+          return (attachments[inputName] ?? []).map(attachment =>
+            mapValues(pointData, ref => attachment.data.get(ref.id)),
+          );
+        },
+      ),
+    });
+  } catch (e) {
+    throw new Error(`Failed to instantiate extension instance '${id}', ${e}`);
+  }
+
+  return {
+    id: options.id,
+    data: extensionData,
+    $$type: 'extension-instance',
+  };
 }
diff --git a/packages/frontend-plugin-api/api-report.md b/packages/frontend-plugin-api/api-report.md
index 4337b0b8c2..a256a4e6e5 100644
--- a/packages/frontend-plugin-api/api-report.md
+++ b/packages/frontend-plugin-api/api-report.md
@@ -4,6 +4,10 @@
 
 ```ts
 import { ComponentType } from 'react';
+import { JsonObject } from '@backstage/types';
+import { z } from 'zod';
+import { ZodSchema } from 'zod';
+import { ZodTypeDef } from 'zod';
 
 // @public (undocumented)
 export type AnyExtensionDataMap = Record<string, ExtensionDataRef<any>>;
@@ -41,7 +45,8 @@ export function createExtension<
       extensionData: AnyExtensionDataMap;
     }
   >,
->(options: CreateExtensionOptions<TData, TPoint>): Extension;
+  TConfig = never,
+>(options: CreateExtensionOptions<TData, TPoint, TConfig>): Extension<TConfig>;
 
 // @public (undocumented)
 export interface CreateExtensionOptions<
@@ -52,11 +57,14 @@ export interface CreateExtensionOptions<
       extensionData: AnyExtensionDataMap;
     }
   >,
+  TConfig,
 > {
+  // (undocumented)
+  configSchema?: PortableSchema<TConfig>;
   // (undocumented)
   factory(options: {
     bind: ExtensionDataBind<TData>;
-    config?: unknown;
+    config: TConfig;
     inputs: {
       [pointName in keyof TPoint]: ExtensionDataValue<
         TPoint[pointName]['extensionData']
@@ -73,13 +81,20 @@ export interface CreateExtensionOptions<
 export function createPlugin(options: BackstagePluginOptions): BackstagePlugin;
 
 // @public (undocumented)
-export interface Extension {
+export function createSchemaFromZod<TOutput, TInput>(
+  schemaCreator: (zImpl: typeof z) => ZodSchema<TOutput, ZodTypeDef, TInput>,
+): PortableSchema<TOutput>;
+
+// @public (undocumented)
+export interface Extension<TConfig> {
   // (undocumented)
   $$type: 'extension';
   // (undocumented)
+  configSchema?: PortableSchema<TConfig>;
+  // (undocumented)
   factory(options: {
     bind: ExtensionDataBind<AnyExtensionDataMap>;
-    config?: unknown;
+    config: TConfig;
     inputs: Record<string, Array<Record<string, unknown>>>;
   }): void;
   // (undocumented)
@@ -115,10 +130,16 @@ export interface ExtensionInstanceConfig {
   // (undocumented)
   at: string;
   // (undocumented)
-  config: unknown;
+  config?: unknown;
   // (undocumented)
-  extension: Extension;
+  extension: Extension<unknown>;
   // (undocumented)
   id: string;
 }
+
+// @public (undocumented)
+export type PortableSchema<TOutput> = {
+  parse: (input: unknown) => TOutput;
+  schema: JsonObject;
+};
 ```
diff --git a/packages/frontend-plugin-api/package.json b/packages/frontend-plugin-api/package.json
index 731e66fed0..cf353e55a6 100644
--- a/packages/frontend-plugin-api/package.json
+++ b/packages/frontend-plugin-api/package.json
@@ -33,6 +33,9 @@
     "react": "^16.13.1 || ^17.0.0"
   },
   "dependencies": {
-    "lodash": "^4.17.21"
+    "@backstage/types": "workspace:^",
+    "lodash": "^4.17.21",
+    "zod": "^3.21.4",
+    "zod-to-json-schema": "^3.21.4"
   }
 }
diff --git a/packages/frontend-plugin-api/src/createSchemaFromZod.test.ts b/packages/frontend-plugin-api/src/createSchemaFromZod.test.ts
new file mode 100644
index 0000000000..90eba44249
--- /dev/null
+++ b/packages/frontend-plugin-api/src/createSchemaFromZod.test.ts
@@ -0,0 +1,34 @@
+/*
+ * Copyright 2023 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { createSchemaFromZod } from './createSchemaFromZod';
+
+describe('createSchemaFromZod', () => {
+  it('should provide nice parse errors', () => {
+    const { parse } = createSchemaFromZod(z =>
+      z.object({
+        foo: z.union([z.string(), z.number()]),
+        derp: z.object({ bar: z.number() }),
+      }),
+    );
+
+    expect(() => parse({ derp: { bar: 'derp' } })).toThrow(
+      `Missing required value at 'foo'; Expected number, received string at 'derp.bar'`,
+    );
+    expect(() => parse(undefined)).toThrow(`Missing required value`);
+    expect(() => parse('derp')).toThrow(`Expected object, received string`);
+  });
+});
diff --git a/packages/frontend-plugin-api/src/createSchemaFromZod.ts b/packages/frontend-plugin-api/src/createSchemaFromZod.ts
new file mode 100644
index 0000000000..447cea8bbd
--- /dev/null
+++ b/packages/frontend-plugin-api/src/createSchemaFromZod.ts
@@ -0,0 +1,59 @@
+/*
+ * Copyright 2023 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { JsonObject } from '@backstage/types';
+import { z, ZodSchema, ZodTypeDef } from 'zod';
+import zodToJsonSchema from 'zod-to-json-schema';
+
+/** @public */
+export type PortableSchema<TOutput> = {
+  parse: (input: unknown) => TOutput;
+  schema: JsonObject;
+};
+
+/** @public */
+export function createSchemaFromZod<TOutput, TInput>(
+  schemaCreator: (zImpl: typeof z) => ZodSchema<TOutput, ZodTypeDef, TInput>,
+): PortableSchema<TOutput> {
+  const schema = schemaCreator(z);
+  return {
+    // TODO: Types allow z.array etc here but it will break stuff
+    parse: input => {
+      const result = schema.safeParse(input);
+      if (result.success) {
+        return result.data;
+      }
+
+      throw new Error(result.error.issues.map(formatIssue).join('; '));
+    },
+    // TODO: Verify why we are not compatible with the latest zodToJsonSchema.
+    schema: zodToJsonSchema(schema) as JsonObject,
+  };
+}
+
+function formatIssue(issue: z.ZodIssue): string {
+  if (issue.code === 'invalid_union') {
+    return formatIssue(issue.unionErrors[0].issues[0]);
+  }
+  let message = issue.message;
+  if (message === 'Required') {
+    message = `Missing required value`;
+  }
+  if (issue.path.length) {
+    message += ` at '${issue.path.join('.')}'`;
+  }
+  return message;
+}
diff --git a/packages/frontend-plugin-api/src/index.ts b/packages/frontend-plugin-api/src/index.ts
index e36391131d..95083bcc73 100644
--- a/packages/frontend-plugin-api/src/index.ts
+++ b/packages/frontend-plugin-api/src/index.ts
@@ -24,7 +24,7 @@ export {
   createExtension,
   coreExtensionData,
   createPlugin,
-  type ExtensionInstanceConfig,
+  type ExtensionInstanceParameters as ExtensionInstanceConfig,
   type BackstagePlugin,
   type Extension,
   type AnyExtensionDataMap,
@@ -34,3 +34,7 @@ export {
   type ExtensionDataRef,
   type ExtensionDataValue,
 } from './types';
+export {
+  createSchemaFromZod,
+  type PortableSchema,
+} from './createSchemaFromZod';
diff --git a/packages/frontend-plugin-api/src/types.ts b/packages/frontend-plugin-api/src/types.ts
index b2d131c62f..3d70a58a0f 100644
--- a/packages/frontend-plugin-api/src/types.ts
+++ b/packages/frontend-plugin-api/src/types.ts
@@ -15,6 +15,7 @@
  */
 
 import { ComponentType } from 'react';
+import { PortableSchema } from './createSchemaFromZod';
 
 /** @public */
 export type ExtensionDataRef<T> = {
@@ -51,12 +52,14 @@ export type ExtensionDataValue<TData extends AnyExtensionDataMap> = {
 export interface CreateExtensionOptions<
   TData extends AnyExtensionDataMap,
   TPoint extends Record<string, { extensionData: AnyExtensionDataMap }>,
+  TConfig,
 > {
   inputs?: TPoint;
   output: TData;
+  configSchema?: PortableSchema<TConfig>;
   factory(options: {
     bind: ExtensionDataBind<TData>;
-    config?: unknown;
+    config: TConfig;
     inputs: {
       [pointName in keyof TPoint]: ExtensionDataValue<
         TPoint[pointName]['extensionData']
@@ -66,13 +69,15 @@ export interface CreateExtensionOptions<
 }
 
 /** @public */
-export interface Extension {
+export interface Extension<TConfig> {
   $$type: 'extension';
+  // TODO: will extensions have a default "at" as part of their contract, making it optional in the instance config?
   inputs: Record<string, { extensionData: AnyExtensionDataMap }>;
   output: AnyExtensionDataMap;
+  configSchema?: PortableSchema<TConfig>;
   factory(options: {
     bind: ExtensionDataBind<AnyExtensionDataMap>;
-    config?: unknown;
+    config: TConfig;
     inputs: Record<string, Array<Record<string, unknown>>>;
   }): void;
 }
@@ -81,29 +86,30 @@ export interface Extension {
 export function createExtension<
   TData extends AnyExtensionDataMap,
   TPoint extends Record<string, { extensionData: AnyExtensionDataMap }>,
->(options: CreateExtensionOptions<TData, TPoint>): Extension {
+  TConfig = never,
+>(options: CreateExtensionOptions<TData, TPoint, TConfig>): Extension<TConfig> {
   return { ...options, $$type: 'extension', inputs: options.inputs ?? {} };
 }
 
 /** @public */
-export interface ExtensionInstanceConfig {
+export interface ExtensionInstanceParameters {
   id: string;
   at: string;
-  extension: Extension;
-  config: unknown;
+  extension: Extension<unknown>;
+  config?: unknown;
 }
 
 /** @public */
 export interface BackstagePluginOptions {
   id: string;
-  defaultExtensionInstances?: ExtensionInstanceConfig[];
+  defaultExtensionInstances?: ExtensionInstanceParameters[];
 }
 
 /** @public */
 export interface BackstagePlugin {
   $$type: 'backstage-plugin';
   id: string;
-  defaultExtensionInstances: ExtensionInstanceConfig[];
+  defaultExtensionInstances: ExtensionInstanceParameters[];
 }
 
 /** @public */
diff --git a/yarn.lock b/yarn.lock
index 363d1b26cf..cc6ad40082 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -4153,8 +4153,11 @@ __metadata:
   resolution: "@backstage/frontend-plugin-api@workspace:packages/frontend-plugin-api"
   dependencies:
     "@backstage/cli": "workspace:^"
+    "@backstage/types": "workspace:^"
     "@testing-library/jest-dom": ^5.10.1
     lodash: ^4.17.21
+    zod: ^3.21.4
+    zod-to-json-schema: ^3.21.4
   peerDependencies:
     react: ^16.13.1 || ^17.0.0
   languageName: unknown